ACC 311 Module 2 Problem Set 13-17
Question 13 of 17 < > 3/3 = i
V¥ Your answer is correct.
Nash uses DM of $54,000 and incurs DL and MOH costs of $58,000 and $31,000, respectively, in a single process that results in two
main products, Tex and Mex. Product Tex, which has an immediate sales value of $94,000, is further processed at a cost of $42,000 in
order to increase its sales value to $140,000. How much are Nash'’s joint costs, and to which products will they be assigned? How much
are Nash's separable costs, and to which products will they be assigned?
Costs Assigned to
Total joint costs $ | 143000 I | Both v|
Total separable costs $ ‘ 42000 l I Tex Vl
eTextbook and Media
Solution
Direct materials $54,000
Direct labor 58,000
MOH costs 31,000
Total joint costs $143,000
The total joint costs will be assigned to the two main products, Tex and Mex, either in their current state at the split-off point, or in
their further-processed state.
Total separable costs amount to $42,000, the cost incurred after the split-off point in order to further process product Tex. These
costs are directly attributable to the Tex product and will only be assigned to that product.
, Question 14 of 17 < > 3/3 = H
' Your answer
is correct.
Atthe end of his company's first year in operation, Richard is allocating costs to the company’s three main products: wheat flour,
bleached white flour, and baking flour. These three products are produced from one main process, which costs the company $113,000.
The company produced 1,950 pounds of wheat flour, 7,950 pounds of bleached white flour, and 5,100 pounds of baking flour. Of the
quantities produced, Richard notes sales of 80%, 90%, and 60% of the wheat, white, and baking flour quantities available, respectively.
Calculate how much of the joint costs will be allocated to each of the three joint products under the physical quantities method. (Round
proportion to 2 decimal places, e.g. 0.25 and final answers
to O decimal places, eg. 5,125.)
Wheat White Baking
Allocated joint costs ~ $ 14690 ‘ 59890 ‘ $ ‘ 38420
eTextbook and Media
Solution Assistance Used
Physical quantities method: Find the proportion of the total quantityof pounds of each product that is available for sale at the
split-off point, then multiply that proportion by the $113,000 of total joint costs.
Wheat White Baking Totals
Quantity in pounds 1,950 7.950 5,100 15,000
+ Total quantity 15,000 15,000 15,000
Proportion of total 013 053 034 100
x Total joint costs $113000 $113000 $113000
Allocated joint costs $14,690 $59,890 $38,420 $113,000
Question 13 of 17 < > 3/3 = i
V¥ Your answer is correct.
Nash uses DM of $54,000 and incurs DL and MOH costs of $58,000 and $31,000, respectively, in a single process that results in two
main products, Tex and Mex. Product Tex, which has an immediate sales value of $94,000, is further processed at a cost of $42,000 in
order to increase its sales value to $140,000. How much are Nash'’s joint costs, and to which products will they be assigned? How much
are Nash's separable costs, and to which products will they be assigned?
Costs Assigned to
Total joint costs $ | 143000 I | Both v|
Total separable costs $ ‘ 42000 l I Tex Vl
eTextbook and Media
Solution
Direct materials $54,000
Direct labor 58,000
MOH costs 31,000
Total joint costs $143,000
The total joint costs will be assigned to the two main products, Tex and Mex, either in their current state at the split-off point, or in
their further-processed state.
Total separable costs amount to $42,000, the cost incurred after the split-off point in order to further process product Tex. These
costs are directly attributable to the Tex product and will only be assigned to that product.
, Question 14 of 17 < > 3/3 = H
' Your answer
is correct.
Atthe end of his company's first year in operation, Richard is allocating costs to the company’s three main products: wheat flour,
bleached white flour, and baking flour. These three products are produced from one main process, which costs the company $113,000.
The company produced 1,950 pounds of wheat flour, 7,950 pounds of bleached white flour, and 5,100 pounds of baking flour. Of the
quantities produced, Richard notes sales of 80%, 90%, and 60% of the wheat, white, and baking flour quantities available, respectively.
Calculate how much of the joint costs will be allocated to each of the three joint products under the physical quantities method. (Round
proportion to 2 decimal places, e.g. 0.25 and final answers
to O decimal places, eg. 5,125.)
Wheat White Baking
Allocated joint costs ~ $ 14690 ‘ 59890 ‘ $ ‘ 38420
eTextbook and Media
Solution Assistance Used
Physical quantities method: Find the proportion of the total quantityof pounds of each product that is available for sale at the
split-off point, then multiply that proportion by the $113,000 of total joint costs.
Wheat White Baking Totals
Quantity in pounds 1,950 7.950 5,100 15,000
+ Total quantity 15,000 15,000 15,000
Proportion of total 013 053 034 100
x Total joint costs $113000 $113000 $113000
Allocated joint costs $14,690 $59,890 $38,420 $113,000
